Friday, January 6, 2012

When is the Perfect Time to Buy Life Insurance?

When is the Perfect Time to Buy Life Insurance?

The last thing on the mind of young people is life insurance. Young people know through the years that they will continue to age, but never actually grasp the concept that it’s really is going to happen to them. At least, not until they wake up one day with an aching body and wrinkled skin. Death is automatically associated with old age, but the reality is that anyone can die at any time.

Don’t Make Your Family Pay for Your Final Rites

When you reach adulthood, buy life insurance. It’s as simple as that. Most young single adults don’t think they need life insurance when no one is dependent on them for support. While that may be true, death is expensive. Who’s going to pay for your funeral expenses if you die tomorrow? Is it your aging parents, your siblings or are you planning to not have a funeral? You might save some money, but the law mandates specific guidelines to follow upon death.

Protect Your Dependents

Young married couples, with or without children, need life insurance. In most families, both spouses are required to work. Don’t get caught up in the outdated belief that only the husband needs life insurance. Death doesn’t recognize gender, so if a wife dies her husband's left with unpaid funeral expenses and financial adversity. Death is a catastrophic event, so don’t add monetary suffering to an already grieving family. It's your responsibility to protect your loved ones from financial hardships.

Life Insurance Never Gets Cheaper

Statistically, young people are low risk for life insurance companies. Although anyone can and do die, more elders die than any other sector of society. Insurance companies can pay claims on a percentage of young people and still make a hefty profit because they take in more in premiums than they pay out. Even children should have a life insurance policy. No one likes to think about the death of a child, but parents can provide life insurance for their children for just pennies a day.

Factors That Increase Life Insurance Costs

Several factors affect the cost of life insurance. Insurance companies consider age, health problems and life style along with statistical data. Generally, the younger you are the healthier you are, so term life insurance premiums will be cheaper than at any other time in your life. If you buy life insurance when you’re young, you can buy any type of insurance you prefer. Some permanent term policies lock the amount of the premium in for life.

The Risk of Waiting until Middle Age to Buy Life Insurance

If you think life insurance is unnecessary, educate yourself. When you compare rates at age twenty-five to rates at age forty-five, it’s clear why you need insurance when you’re young. Life insurance rates continue to rise with age. If you wait until you have health issues, most insurance companies will deny you coverage and you won’t be able to obtain insurance at all. If you do, the policy will probably have exclusions refusing payment if death results from an existing health condition.

1 comment:

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The sun stopping in the sky for an hour, for instance. Or an oil lamp burning for eight days on only one day's worth of oil.


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